Outflows, Accretion Disks & the IGM: High Resolution Chandra & XMM Spectroscopy of AGN *Tahir Yaqoob, B. McKernan, U. Padmanabhan, P. Serlemitsos, I. George, J. Turner, J. Reeves *Johns Hopkins University Physics Astronomy 3400 N. Charles St. Baltimore, MD 21218 We discuss the principal new results which have emerged from over five years of high resolution X-ray spectroscopy of Active Galactic Nuclei with Chandra and XMM. The picture emerging from measurments of absorption and emission lines, both from the soft X-ray band and the Fe K band is one which is more complex than anticipated during the ASCA era and provides important new clues on the dynamics and physical state of circumnuclear matter, as well as the putative accretion disk, and in some cases the IGM. The current data provide a tantalizing glimpse into an even richer phenomenology which will likely be uncovered by Astro-E2 and future missions. We show some simulations illustrating how Astro-E2 will resolve some key dengeneracies in the cuurent data and therefore provide unique constraints on the ionization structure and kinematics of matter in the central engine of AGN.